The Global Biometric Banking Market size is expected to reach $16.2 billion by 2030, rising at a market growth of 16.6% CAGR during the forecast period.
In banks, fingerprint biometrics are commonly used for user authentication. Customers could use their biometrics to access their bank accounts, make transactions, and perform numerous banking operations. Therefore, fingerprint segment would generate $2,826.1 million revenue in the market in 2022. Some banks use fingerprint biometrics to control access to their physical branches, especially in high-security or restricted-access areas. The market has been evolving rapidly, with technological advancements significantly enhancing security, improving user experience, and expanding the range of applications. Integrating biometric authentication into payment cards enables users to authenticate transactions using their fingerprint or other biometric data directly at the point of sale (PoS) terminals.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In June, 2023, Mastercard joined forces with Middle East Payment Services, a payment processor and card issuer, along with Zwipe, to unveil a range of biometric payment cards. Before this launch, MEPS collaborated extensively with Zwipe and Mastercard to conduct an extended pilot and testing phase for these new cards. Moreover, In March, 2023, Mastercard signed a partnership with Singtel Optus Pty Limited, to offer Optus customers a secure method for confirming their identity. Via the My Optus app, users can establish a reusable digital identity, eliminating the necessity for physical document submission when sharing information with consent.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Google LLC, NEC Corporation, Apple, Inc., The Charles Schwab Corporation, Mastercard Inc., Barclays Plc, Visa Inc., PayPal Holdings, Inc., Samsung Electronics Co. Ltd. and Aliph Brands.
In banks, fingerprint biometrics are commonly used for user authentication. Customers could use their biometrics to access their bank accounts, make transactions, and perform numerous banking operations. Therefore, fingerprint segment would generate $2,826.1 million revenue in the market in 2022. Some banks use fingerprint biometrics to control access to their physical branches, especially in high-security or restricted-access areas. The market has been evolving rapidly, with technological advancements significantly enhancing security, improving user experience, and expanding the range of applications. Integrating biometric authentication into payment cards enables users to authenticate transactions using their fingerprint or other biometric data directly at the point of sale (PoS) terminals.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In June, 2023, Mastercard joined forces with Middle East Payment Services, a payment processor and card issuer, along with Zwipe, to unveil a range of biometric payment cards. Before this launch, MEPS collaborated extensively with Zwipe and Mastercard to conduct an extended pilot and testing phase for these new cards. Moreover, In March, 2023, Mastercard signed a partnership with Singtel Optus Pty Limited, to offer Optus customers a secure method for confirming their identity. Via the My Optus app, users can establish a reusable digital identity, eliminating the necessity for physical document submission when sharing information with consent.
Cardinal Matrix - Market Competition Analysis
Based on the Analysis presented in the Cardinal Matrix; Apple, Inc. is the forerunner in the Market. In June 2023, Apple, Inc. formed a partnership with HDFC Bank, to expand its investment and manufacturing the Indian market. Companies such as Google LLC and Samsung Electronics Co., Ltd. are some of the key innovators in the Market.COVID-19 Impact Analysis
The COVID-19 pandemic had a severe impact on the world's economy. The outbreak affected almost all industries, either positively or negatively. The pandemic outbreak positively impacted the market in the initial months. The pandemic forced the adoption of digital technologies in all sectors, including banking. Banks and financial organizations were urged to accelerate digital transformation efforts and invest more in biometric authentication solutions to enhance security and expedite digital processes. While individuals became physically cautious about interaction, contactless payment methods increased. Biometric authentication techniques, such as facial and voice recognition, gained popularity because they offer secure and straightforward ways of authorizing transactions without physical contact. Overall, the pandemic spurred development in biometric technology, resulting in improvements such as more precise facial recognition algorithms, improved voice recognition systems, and expanded liveness detection. Therefore, the market has expanded significantly.Market Growth Factors
Increase in mobile banking and contactless payments
After the COVID-19 pandemic, individuals began to favor contactless payment methods. Ensuring secure and dependable payment solutions is crucial in light of the growing cyber threats. Furthermore, the widespread use of contactless payment solutions has been further accelerated by the COVID-19 pandemic. This is due to consumers' desire to minimize physical contact with payment devices to save themselves from getting in touch with harmful bacteria. Therefore, these factors drive the expansion of the market.Rising biometrics use in increasing security and reducing identity frauds
Biometric authentication can be combined with other factors like PINs or tokens to create a multi-factor authentication (MFA) system, further enhancing security. Unlike traditional passwords, biometric data cannot be easily stolen or guessed, reducing the risk of unauthorized access. Biometric data can provide non-repudiation, meaning the user cannot deny their actions since their unique biometric data was used for authentication. Consequently, these factors are anticipated to expand the market.Market Restraining Factors
Security concerns and high implementation costs
Security concerns and high implementation costs are two significant challenges facing the market. Ethical considerations revolve around obtaining informed consent from users for collecting and using their biometric data. Banks must address concerns related to data ownership and potential surveillance implications. Insider threats from bank employees with access to biometric data can lead to unauthorized access or data breaches. Implementing strict access controls and monitoring is crucial. Also, banks may need to invest in user education and training programs to ensure customers understand biometric authentication and troubleshoot any issues securely. Therefore, it is anticipated that these factors will restrain the growth of the market.Type Outlook
Based on type, the market is fragmented into fingerprint, facial recognition, hand geometry, iris recognition, and others. The hand geometry segment recorded a remarkable revenue share in the market 2022. Hand geometry recognition has been used for physical access control in bank branches and secure areas within banks. Using hand geometry scans, employees and authorized personnel can access restricted areas, vaults, and data centers. This technology helps enhance security and ensures that only authorized individuals can enter sensitive areas. Banks may use hand geometry recognition for time and attendance tracking of employees. This provides accurate work hours and attendance recording, crucial for payroll processing and compliance with labor regulations.Vertical Outlook
By vertical, the market is retail, government, transportation, healthcare, hospitality, and others. The transportation segment covered a considerable revenue share in the market 2022. The transportation industry has increasingly adopted biometric technology to enhance security, improve passenger experience, and streamline operations. Biometrics offer unique benefits in this sector, where identity verification and access control are critical. It is attributed to biometric authentication enabling passengers to move seamlessly through various touchpoints of their travel journey, from check-in and security to boarding and baggage claim.Component Outlook
On the basis of component, the market is segmented into hardware, software, and services. In 2022, the hardware segment dominated the market with the maximum revenue share. The development of mobile biometric devices, a greater emphasis on hardware-based security abilities, and the expanding use of biometric technologies in electronics for consumers for verification and identification applications are significant factors fueling the expansion of biometric technology. The benefits of biometric hardware, such as reliable accountability, excellent performance, dependability, and high security & assurance, help propel this market's expansion. Numerous vendors are investing in R&D for cutting-edge technologies to enhance hardware capabilities and reduce costs for small and medium-sized businesses.Regional Outlook
Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the North America region witnessed the largest revenue share in the market. In the United States, biometric technologies are utilized in various sectors, including government, homeland security, commerce, and the legal system. An increasing number of safety and security needs are being met by biometric technology due to the increased global threat of terrorism. Due to its highly developed technological infrastructure and strong emphasis on data security and privacy regulations, North America remains at the forefront of biometric banking implementation. Large financial institutions in the United States and Canada have substantially invested in biometric banking systems. These products safeguard client accounts, prevent unauthorized access, and provide a straightforward and secure banking experience.The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Google LLC, NEC Corporation, Apple, Inc., The Charles Schwab Corporation, Mastercard Inc., Barclays Plc, Visa Inc., PayPal Holdings, Inc., Samsung Electronics Co. Ltd. and Aliph Brands.
Strategies deployed in the Market
» Partnerships, Collaborations and Agreements:
- Jun-2023: Apple, Inc. formed a partnership with HDFC Bank, an Indian banking and financial services company to launch a credit card in India. Through this partnership, Apple would be able to expand its investment and manufacturing the Indian market.
- Jun-2023: Mastercard forged a partnership with NAPS, a leading entity in the burgeoning Moroccan financial technology industry, to innovate pioneering payment alternatives for both individuals and enterprises. Additionally, Mastercard intends to accelerate the creation of digital payment innovations within Morocco, fortifying the nation's position as a prominent financial technology centre in the Arab region.
- Jun-2023: Mastercard joined forces with Middle East Payment Services, a payment processor and card issuer, along with Zwipe, a biometric tech firm, to unveil a range of biometric payment cards. Before this launch, MEPS collaborated extensively with Zwipe and Mastercard to conduct an extended pilot and testing phase for these new cards. Additionally, the successful pilot phase achievement enables banks and issuers to introduce these cards swiftly and effectively.
- Mar-2023: Mastercard signed a partnership with Singtel Optus Pty Limited, an Australian telecommunications company, to offer Optus customers a secure method for confirming their identity. Via the My Optus app, users can establish a reusable digital identity, eliminating the necessity for physical document submission when sharing information with consent. Additionally, this ID empowers customers to oversee and safeguard their data, employing top-tier technology to guarantee the safety and confidentiality of their personal information.
- Feb-2023: Google LLC teamed up with Anthropic, an AI startup specializing in safety and research. Anthropic has chosen Google Cloud as its preferred cloud partner to access the computational resources needed for building dependable AI systems. Google Cloud also plans to construct advanced TPU and GPU clusters to support Anthropic's AI training and deployment needs.
- Dec-2022: Apple, Inc. extended its partnership with Goldman Sachs Group Inc., an American multinational investment bank, to provide the services of a high-yield savings account to Apple cardholders. Through this partnership, Apple provided its customers the services of the "buy now, pay later" plans.
- May-2022: Apple, Inc. formed a partnership with Google, LLC, an American multinational technology company, and Microsoft, an American multinational technology corporation, to expand their support towards the common passwordless sign-in, created by the FIDO Alliance and the World Wide Web Consortium. Through this partnership, the web users were given security and end-to-end passwordless option.
- Oct-2021: Visa Inc. has collaborated with Callsign, a unique identifier for a transmitter station, for its behavioural biometric and device intelligence identity solutions. This collaboration entails Visa integrating Callsign's offerings into its network of financial institutions, payment service providers, and merchants throughout Europe.
» Product Launches and Product Expansions:
- Jun-2023: Google LLC introduced Anti Money Laundering AI, an AI-powered tool for financial institutions to enhance their money laundering detection. It offers a dynamic customer risk score based on machine learning, improving accuracy and operational efficiency.
- Oct-2022: Mastercard unveils Crypto SourceTM, a novel initiative empowering financial institutions to offer secure cryptocurrency trading services to their clientele. With this, Mastercard is broadening its collaboration with Paxos Trust Company, a prominent regulated blockchain infrastructure provider. The partnership's objective is for Paxos to furnish cryptocurrency trading and custody solutions for banks, while Mastercard harnesses its technology to seamlessly incorporate these capabilities into the banks' interfaces.
- Oct-2022: PayPal Holdings, Inc. announced the addition of passkeys as an easy and secure login method for PayPal accounts. This new login option was initially made available to iPhone, iPad, and Mac users on PayPal.com and later expanded to additional platforms as they added support for passkeys. Through this addition, customers able to enjoy a more seamless checkout experience, eliminating the risks associated with weak and reused credentials and alleviating the frustration of remembering a password while shopping online.
- May-2022: Mastercard unveiled a retailer program, introducing biometric payment options such as facial and fingerprint authentication. Through this launch, users can verify their payment by presenting their face or palm at the checkout point, instead of swiping their card.
- Jan-2022: Samsung Electronics Co. Ltd. unveiled its latest fingerprint security IC (integrated circuit), the S3B512C, featuring upgraded security capabilities. The S3B512C integrates a fingerprint sensor, a secure element (SE), and a secure processor, delivering an additional level of authentication and security for payment cards. Moreover, while the IC was primarily intended for payment cards, the S3B512C is also suitable for cards demanding highly secure authentication.
» Acquisitions and Mergers:
- Sep-2021: PayPal Holdings, Inc. announced the acquisition of Paidy, a leading two-sided payments platform and provider of buy now, to expand its capabilities, distribution, and relevance in Japan. Under the acquisition, Paidy has sustained its ongoing operations and brand, with Paidy's president and CEO, along with founder and executive chairman, retained their positions.
Scope of the Study
Market Segments Covered in the Report:
By Type- Fingerprint
- Facial Recognition
- Hand Geometry
- Iris Recognition
- Others
- Retail
- Transportation
- Hospitality
- Government
- Healthcare
- Others
- Hardware
- Software
- Services
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Google LLC
- NEC Corporation
- Apple, Inc.
- The Charles Schwab Corporation
- Mastercard Inc.
- Barclays Plc
- Visa Inc.
- PayPal Holdings, Inc.
- Samsung Electronics Co. Ltd.
- Aliph Brands
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Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global Biometric Banking Market, by Type
Chapter 6. Global Biometric Banking Market, by Vertical
Chapter 7. Global Biometric Banking Market, by Component
Chapter 8. Global Biometric Banking Market, by Region
Chapter 9. Company Profiles
Companies Mentioned
- Google LLC
- NEC Corporation
- Apple, Inc.
- The Charles Schwab Corporation
- Mastercard Inc.
- Barclays Plc
- Visa Inc.
- PayPal Holdings, Inc.
- Samsung Electronics Co. Ltd.
- Aliph Brands
Methodology
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